Perth

Record year for hotel sales in Western Australia

2012-12-10T06:00:00Z

The Australian hotel investment market has experienced one of the strongest years on record with total transaction volumes reaching $1.44 billion for the year-to-date. This represents the second highest level on record behind the 2007 peak when transaction volumes reached $1.78 billion. A total of 25 hotel transactions above $5 million have occurred so far this year, including two national record breaking deals being the Marriott Portfolio and the Shangri-La Hotel Sydney.

Mr Aaron Desange, Senior Vice President, Jones Lang LaSalle Hotels said, “Reflecting the success of the Australian hotel investment market this year, the highest sale price ever achieved for a Western Australian hotel occurred through the sale of the 300 room Esplanade Hotel Fremantle to Australian property syndicator Primewest at $88.5 million.”

Other major deals included the King Way Hotel at $16.4 million and the Mantra Bunbury at $11.5 million, which both sold to private local companies. Each of the abovementioned sales were brokered by Jones Lang LaSalle Hotels.

In terms of trading, Perth has outperformed all other Australian cities in 2012. Mr Aaron Desange, Senior Vice President, Jones Lang LaSalle Hotels said, “Perth has consistently achieved RevPAR growth this year and the latest year-to-date STR data shows further growth of 12.8% to $196 – the highest in the country.”

The Western Australian Government placed development sites FESA House and Elizabeth Quay in Perth CBD on the market through Jones Lang LaSalle Hotels earlier this year in an effort to combat the room-shortage situation. Both marketing campaigns yielded strong enquiry.

Mr Desange noted, “Each of the properties we marketed this year ranging from hotel development sites, to mid-market; regional to core CBD, have received significant interest from both local and offshore parties looking to capitalise on the region’s exceptional trading fundamentals and positive outlook, particularly with the substantial investment both public and private, into the region’s corporate and leisure infrastructure to cater to building demand.” He added, “We expect 2013 to be another successful year for Western Australian hotels with the positive investor sentiment following the strong year of sales experienced.”​